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CS Executive · Tax Laws and Practice · Classification and Tax Incidence on Companies

Section 136 of the Income-tax Act, 2025 gives a deduction for political contributions. How does the section define the meaning of the word 'contribute' for this purpose?

The term 'contribute' takes its meaning from section 182 of the Companies Act, 2013, as provided in section 136(2) of the Income-tax Act, 2025. The Representation of the People Act is used only to identify registered political parties.

  1. AIt has the meaning given to it in section 182 of the Companies Act, 2013Correct
  2. BIt has the meaning given in the Representation of the People Act, 1951
  3. CIt means only donations exceeding Rs. 2,000 made through banking channels
  4. DIt has no defined meaning and depends on the Assessing Officer's view

Explanation

Section 136(2) says 'contribute' and its grammatical variations have the same meaning as in section 182 of the Companies Act, 2013. The Representation of the People Act is referred to only for registration of the political party under its section 29A. The section sets no Rs. 2,000 threshold.

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